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The Bank of America® Business Advantage Cash Rewards Mastercard® Credit Card is a no-annual fee, small business credit card with an attractive cash back rewards program. Though it’s not currently on our list of the best small business credit cards, this Bank of America credit card is always a contender to make our best cash back credit cards list.

What makes Business Advantage Cash Rewards Mastercard so great? Aside from the sign-up bonus, there’s the solid cash back deal, anchored by 3% cash back on your choice of business spending and 2% cash back on dining purchases. And did I mention there’s no annual fee?

This card isn’t a silver bullet for credit-seeking business owners, but it does have plenty going for it. Here’s what you need to know about its features, upsides, downsides, and overall suitability.

Key Features

Sign-up Bonus

When you spend at least $3,000 within the first 90 days of account opening, you get a $300 bonus, payable as a statement credit to your account.

Earning Cash Back

The Bank of America® Business Advantage Cash Rewards Mastercard Credit Card earns 3% cash back in your choice of one of the following six categories:

• Gas stations
• Office supply stores
• Travel
• TV/telecom and wireless
• Computer services
• Business consulting services

and 2% cash back on dining purchases, up to $50,000 in combined 3% and 2% category purchases per year. All other purchases, including 3% and 2% category spending above the $50,000 annual spending cap, earn unlimited 1% cash back.

Redeeming Cash Back

Accumulated cash back can be redeemed for statement credits against your credit card balance or deposited into a small business checking or savings account at Bank of America®. The minimum redemption threshold is $25. No matter how you choose to redeem, using your cash back wisely can be a great way to reduce your business expenses and save money on a tight budget.

Preferred Rewards for Business Program

As a member of the Preferred Rewards for Business program’s Platinum Honors tier, you’ll earn 75% more cash back on all eligible spending. Refer to the program’s terms and conditions for more details.

Introductory APR

See terms for the latest APR information.

Regular APR

See terms for the latest APR information.

Important Fees

Business Advantage Cash Rewards Mastercard has no annual fee. Foreign transactions cost 3% of the transaction amount. Balance transfers and cash advances both cost the greater of $10 or 4% of the transaction amount (except overdraft protection cash advances, which cost the greater of $10 or 3% and require enrollment in the Bank of America® overdraft protection program to qualify for the lower fee). Late payments cost up to $49, while returned payments cost $39.

Overdraft Protection Transfers for Bank of America Deposit Accountholders

Business Advantage Cash Rewards Mastercard has an optional (opt-in) overdraft protection transfer program for Bank of America deposit account holders.

When you attempt a checking account transaction that would typically result in an overdraft, Bank of America automatically draws a cash advance on your credit card’s credit line. This allows the transaction to go through as intended.

Cash advances are drawn in increments of $100 (for instance, a $75 overdraft would incur a $100 transfer) and begin accruing interest at the regular cash advance rate immediately. There’s a fee of $10 or 3% (whichever is greater) for each transfer.

Cash Flow Management Tools for Business

This card comes with some useful cash flow management tools for business, including:

• An automatic online payment system
• QuickBooks integration
• Transaction categorization/tracking through the online MyReport system

Mastercard-Backed Cardholder Benefits

Business Advantage Cash Rewards Mastercard has a slew of Mastercard-backed benefits, most of which cost nothing out of pocket. The most noteworthy include lost luggage replacement, emergency ticket replacement, and travel accident insurance.

Credit Required

Business Advantage Cash Rewards Mastercard is designed for business owners with excellent credit. Any notable credit issues in your recent past, including business or personal bankruptcy, will likely disqualify your application.

Advantages

1. No Annual Fee. The Bank of America® Business Advantage Cash Rewards Mastercard Credit Card has no annual fee. That’s great news for light spenders who don’t earn rewards quickly enough to offset recurring annual charges.
2. Generous Cash Back Rewards (3%) on Your Choice of Spending Category. This card’s 3% category is quite generous – worth $1,500 in annual cash back when maxed out. For comparison, the consumer version of this card, BankAmericard Cash Rewards, caps 3% category spending at $10,000 per year.
3. 2% Cash Back at Restaurants. This card’s 2% category is excellent as well. With 2% earning at restaurants on the first $50,000 in combined 3% and 2% category spending, it’s tailor-made for business owners who need to wine and dine clients and employees often.
4. Easy to Attain Sign-up Bonus. The $300 sign-up bonus statement credit is easy to reach, requiring just $3,000 in spending within 90 days of account opening. Even modest-spending business owners should have little trouble clearing this threshold.
5. Overdraft Protection for BoA Deposit Accountholders. If you have a Bank of America® business checking account, you can opt into this card’s overdraft protection program and worry a little bit less about your checking account balance. There’s a $10 (or 3%) fee per transfer, but that may still be preferable to an embarrassing overdraft.
6. Preferred Rewards for Business Platinum Honors Members Earn 75% More Cash Back. As a Preferred Rewards for Business Platinum Honors member, you’re entitled to a substantial cash back boost – 75% on all eligible earnings.

Disadvantages

1. $25 Minimum Cash Back Redemption Threshold. You can’t redeem your accumulated cash back until you hit the $25 threshold. If you use this card exclusively when you gas up your car for work, then you might take some time to reach this threshold.
2. Has a 3% Foreign Transaction Fee. This card has a 3% foreign transaction fee. If you routinely travel out of the country on business, even just to Canada or Mexico, this is likely to pose a problem. Look instead for a business rewards credit card with no foreign transaction fees, such as Chase Ink Business Preferred.
3. Modest Baseline Cash Back Rate (1%). This card’s baseline cash back rate is a modest 1%. Though unlimited, that’s not exactly a great rate of return. If you’re looking for a business credit card that offers a higher rate of return on a wider range of spending, check out Capital One options such as Spark Cash for Business and Spark Miles for Business, one of the top travel rewards credit cards on the market.

Final Word

The Bank of America® Business Advantage Cash Rewards Mastercard® Credit Card is similar in many respects to Bank of America’s popular consumer cash back card, the BankAmericard Cash Rewards. Both cards have a 3-tiered cash back rewards system, for instance. But Business Advantage Cash Rewards Mastercard’s 3% category has a much higher spending cap – $50,000, compared with just $10,000 for the consumer version.

If you own a small business or work as a full-time freelancer or independent professional, the choice is clear.